Heavy Minerals : High Grade Mineralisation Expands Port Gregory Footprint

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ASX Announcement Date: 14 Mar 2022

HIGH GRADE MINERALISATION EXPANDS PORT GREGORY FOOTPRINT

• Assay results for the entire 2022 drilling campaign have been returned, with results submitted to IHC Mining for inclusion in the JORC Mineral Resource model due for release within 3-4 Weeks
• Notable intersections at a cut-off grade of 2% THM (refer to Table 1) include:

• • 9.3% THM over 12 m from surface (PGAC0165)
  • 7.7% THM over 15 m from surface (PGAC0169)
  • 5.7% THM over 27 m from 1m downhole (PGAC0154)
  • 5.7% THM over 19 m from surface (PGAC0167)
• Extension drilling has uncovered a large, thick, high grade mineralised sand package not previously identified or included in previous Exploration Targets. The mineralisation is open to the North and South and will be targeted for follow up drilling to determine the extent of the mineralisation

Heavy Minerals Limited (ACN 647 831 833) ("HVY", "Heavy Minerals" or the "Company") is pleased to announce that assay results for the 2022 drilling campaign have been received, processed, and are summarised in Table 1. The focus of the 2022 campaign was to complete drilling of the exploration target area and conduct extension drilling to follow-up encouraging 2021 results which highlighted the mineralisation was open to the East. HVY successfully drilled 40% more ground than originally planned, delivering numerous high-grade, shallow THM intercepts; The mineralised footprint has been extended significantly as a result.

Open

Open

Open

Extent of original

Exploration Target

Figure 1: Preliminary block model provided by IHC Mining showing indicative THM grade distribution

HEAVY MINERALS LIMITED | ABN: 26 647 831 883 | Business Address: Unit 2, 106 Robinson Avenue, Belmont, Western Australia 6104 |

Registered Address: Level 11, London House, 216 St George's Terrace, Perth, Western Australia 6000 | Phone: [phone] | Fax: [phone] |

E-mail: [e-mail] | Website: www.heavyminerals.com|

Non-Executive Chairman: Adam Schofield | Executive Director & CEO: Nic Matich | Non-Executive Director: Greg Jones | Non-Executive Director: Glenn Simpson |

Company Secretary: Stephen Brockhurst

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Extension Drilling

During the drilling campaign, HVY conducted extension drilling to cover a footprint 40% larger than that of the original Exploration Target (HVY ASX release 1st February 2022). The extension drilling was conducted to extend upon open mineralisation encountered on the eastern side of the target area.

A preliminary block model for the project is presented in Figure 1. The mineralisation is open to both the North and South, within HVY's tenure E70/5160 and recently granted tenement E70/5394.

Select intercepts highlighting the high-grade extension drilling results are presented in Figure 2:

Figure 2 Oblique view looking due northeast, of select extension drill holes

Executive Director & CEO, Mr. Nic Matich said:

"The importance of the 2022 campaign results can't be understated. Extending the mineralised footprint by this amount with high grade, shallow mineralisation, significantly bolsters the prospectivity of the project. As additional work enhances our understanding of the project, we are seeing more and more similarities with the other active garnet operations in the region like GMA & RDG."

Upcoming News:

• March 2022: Maiden JORC Mineral Resource (Port Gregory)
• April 2022: Metallurgy results (Inhambane)
• Second Quarter 2022: Metallurgy results and Scoping Study Commencement (Port Gregory)

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For personal use only

Summary of drilling results from 2022

This announcement refers to, a total of 83 holes for 2,927.8 m (refer to Figure 3) that were drilled up to the end of January 2022. All samples drilled were submitted for assay and these assay results have now been returned. A total of 2,293 samples were submitted to Diamantina Laboratories for assay by wet screening and THM float/sink using Tetrabromomethane (TBE). The visual/empirical estimates for the garnet and ilmenite proportion of the THM are very encouraging and are similar in composition to those from the 2021 campaign. A complete summary of the drilling, sampling and assaying techniques is presented in Appendix 1.

The drilling program consisted of aircore drilling to limestone basement or where THM mineralisation closed out, on a regular spaced grid of 100 m east-west by 500 m north-south locations. All holes drilled were vertical and targeted the dunal sand package that sits on top of the Tamala Limestone. Significant drill results are presented in Table 1 below and a complete list of results is provided in Appendix 2.

Table 1: E70/5160 Tenement - Significant Summary Assay Results for 2022 Drilling Campaign

HOLE_ID	EASTING	NORTHING	RL	EOH	DIP	AZIMUTH	FROM	TO	LENGTH	THM	SLIMES	OS
(GDA94)	(GDA94)	(m)	(m)	(m)	(m)	(m)	(%)	(%)	(%)
PGAC0107	229113	6887903	91.8	45	-90	360	1	12.0	11.0	7.2	11	9
PGAC0109	228966	6887780	94.8	24	-90	360	2	14.0	12.0	6.8	7	2
PGAC0110	228894	6887698	94.2	19	-90	360	0	15.0	15.0	4.8	6	1
PGAC0111	228827	6887628	90.5	15	-90	360	3	11.0	8.0	4.7	5	1
PGAC0116	228470	6887273	79.9	39	-90	360	4	9.0	5.0	5.1	9	15
PGAC0122	228117	6886924	63.6	60	-90	360	4	12.0	8.0	4.6	12	8
PGAC0123	228047	6886849	62.7	55	-90	360	10	16.0	6.0	4.8	8	10
PGAC0124	227976	6886781	59.9	51	-90	360	12	17.0	5.0	5.0	10	9
PGAC0145	228759	6886151	54.9	60	-90	360	5	9.0	4.0	5.6	12	10
PGAC0146	230021	6887404	81.5	47	-90	360	0	11.0	11.0	4.3	9	4
PGAC0149	230377	6887062	81.9	39	-90	360	4	16.0	12.0	5.6	6	2
PGAC0151	230452	6887127	89.9	39	-90	360	1	16.0	15.0	5.5	4	3
PGAC0153	230663	6886647	86.6	48	-90	360	0	13.0	13.0	4.3	6	6
PGAC0153	230663	6886647	72.1	48	-90	360	14	28.0	14.0	5.5	9	4
PGAC0154	230733	6886722	78.4	45	-90	360	1	28.0	27.0	5.7	8	3
PGAC0155	230523	6887205	80.1	42	-90	360	15	25.0	10.0	6.5	14	12
PGAC0158	230870	6886859	90.6	20	-90	360	0	9.0	9.0	4.7	6	7
PGAC0159	230947	6886926	67.2	39	-90	360	27	31.0	4.0	5.8	12	1
PGAC0160	231010	6887002	70.7	42	-90	360	18	26.0	8.0	4.2	15	5
PGAC0163	230661	6885929	66.0	18	-90	360	0	10.0	10.0	4.8	11	10
PGAC0165	231442	6885287	76.1	20	-90	360	0	12.0	12.0	9.3	9	4
PGAC0166	231367	6885224	72.3	13.5	-90	360	0	13.5	13.5	6.0	8	4
PGAC0167	231298	6885152	71.7	20.4	-90	360	0	19.0	19.0	5.7	11	12
PGAC0168	231290	6885853	80.3	14.9	-90	360	0	14.9	14.9	4.2	8	4
PGAC0169	231226	6885783	75.8	42	-90	360	0	15.0	15.0	7.7	7	6
PGAC0170	231162	6885718	73.5	39	-90	360	0	15.0	15.0	4.1	10	4

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only	HOLE_ID	EASTING	NORTHING	RL	EOH	DIP	AZIMUTH	FROM	TO	LENGTH	THM	SLIMES	OS
	(GDA94)	(GDA94)	(m)	(m)	(m)	(m)	(m)	(%)	(%)	(%)
	PGAC0171	231087	6885647	72.4	25	-90	360	0	7.0	7.0	4.2	10	9
	PGAC0172	231021	6885577	66.0	12	-90	360	0	12.0	12.0	4.4	8	7
	PGAC0174	230891	6885447	66.5	15	-90	360	0	10.0	10.0	5.9	9	15
	PGAC0175	230875	6886146	84.7	17	-90	360	0	17.0	17.0	4.1	8	2
For personal use	PGAC0177	230737	6886003	73.9	14	-90	360	0	10.0	10.0	4.1	6	11
PGAC0182	231017	6886281	67.0	24	-90	360	18	24.0	6.0	5.8	9	3
PGAC0183	230943	6886213	82.7	24	-90	360	0	19.0	19.0	4.2	8	6
Results are prepared from composited drill hole assays at a cut-off grade of 2% THM, with significant lengths greater than 4 m and all composited intervals
				are continuous and unbroken.

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Figure 3: Drill collars referenced in this announcement

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